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VulkanBet Departs from Russian Market Ahead of New Regulations
By Jeff Osienya Dec 21, 2020 IndustryThe Russian online casino and sports betting expanse is now one operator less after VulkanBet.ru announced its exit. The gaming operator cited that it doesn’t see a promising future in Russia and will officially be out of the market on 1st Jan.VulkanBet.ru, one of the most prominent online casino, sports, and eSports betting brands has announced that it will be ceasing its operations in the Russian Federation starting 1st January 2021. The gaming site’s move comes in response to the planned introduction to new gaming regulations in the Russian market.
The Russian facing domain of VulkanBet is no longer accepting new wagers from players in the region but has vowed to honor existing commitments to its platform members and business partners by the end of this month, on 31st December. In the statement announcing its exit from the Russian market, the Malta-based iGaming operator disclosed that it will focus its attention on greener pastures where the regulations are more conducive for running an iGaming business.
The Regulation That is Pushing VulkanBet Out of the Russian Market
In VulkanBet.ru’s announcement, the operator did not specifically indicate the legislation that has led to their exit, but industry observers agree that VulkanBet’s action or rather reaction is due to the proposed Bill No. 1055657-7.
According to the suggestions in the draft law, a new 1% tax will be introduced on betting turnover to contribute more funding to sports bodies in the country. Moreover, there will be some significant minimums for every league levied per operator, to be paid every quarter. The other radical change that plans to be introduced in Russia with the new law is the scrapping off of the two rival gaming industry bodies and will be replaced by a unified gambling ombudsman.
Anna Dmitrieva, a spokesperson from the VulkanBet team issued a statement to criticize the proposed Bill No. 1055657-7 saying that it aroused suspicion and did not give the gaming company much confidence for its future in the Russian iGaming market. While operating in the country, the Russian VulkanBet branch had been a sponsor of an amateur soccer league, and a couple of eSports teams and competitions on several occasions.
The VulkanBet spokesperson also clarified that the company was not against increased earmark contributions to Russian sports, but rather the incredibly high volume of the mandatory funding that the proposed law demands from operators.
But then again, it is worth noting that the briefing released by VulkanBet.ru doesn’t talk of a permanent exit. From the look of things, this exit is a temporary measure until the operator monitors the developments of the situation and perhaps even consider a re-entry in the future. Until then, players from Russia will have to look elsewhere to quench their iGaming thirst.
VulkanBet.ru is not the Only Russian Platform to Question the Market’s Hospitability
Other than VulkanBet, several other Russian facing online gaming brands have decided to boot the market thanks to the planned regulatory overhaul. The likes of BetCity, Liga Stavok, Winline, FonBet, and 888.ru (this site isn’t in any way affiliated with UK’s 888 Holdings) also reconsidered the viability of Russia’s online gambling climate and called it quits.
The proposed Bill No. 1055657-7 is scheduled to have its second reading this week. As we wait for the bill to be signed into law after approval by Russia’s parliament, there’s no way of knowing how many more online casino and sports betting operators will bid the Russian market farewell. The big question here is, how many operators will stay put and bet their revenue against the harsh sports contributions?
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